Consumer sentiment increases in October

Consumer Sentiment was 59.8 in October, according to the University of Michigan Consumer Sentiment Index. October’s figure was 1.2 points above Septembers reading and is 11.9 points below the October 2021 index. The Current Economic Conditions Index rose 5.6 points from the previous month to 65.3 and is 12.4 points below the October 2021 index. The Consumer Expectations Index decreased by 1.8 point to 56.2 and is 11.7 points lower from a year ago.

“Continued uncertainty over the future trajectory of prices, economies, and financial markets around the world indicate a bumpy road ahead for consumers. The median expected year-ahead inflation rate rose to 5.1%, with increases reported across age, income, and education. Last month, long run inflation expectations fell below the narrow 2.9-3.1% range for the first time since July 2021, but since then expectations have returned to that range at 2.9%. After 3 months of expecting minimal increases in gas prices in the year ahead, both short and longer run expectations rebounded in October”. said Joanne Hsu, Director of UM Surveys of Consumers.

Read the University of Michigan Surveys of Consumers release.